Six bosses leave firm after probe (From Bradford Telegraph and Argus)

Six bosses leave firm after probe

10:45am Thursday 2nd July 2009 in

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The owner of the Batley-based Welcome Finance consumer loans firm has sacked six senior bosses after a probe into accounting irregularities which blew a £700 million hole in the company’s balance sheet.

Cattles executives, including finance director James Corr and chief operating officer Ian Cummine, have left following “a breakdown in controls” which resulted in its policies on bad debts being applied incorrectly.

It is understood this involved deferring and extending repayment terms on under-performing loans to avoid making a loss provision in the accounts.

Cattles uncovered the breakdown in February and warned in April that provisions for 2008 and previous years would be £700 million higher than expected.

The six bosses had been suspended since March. The Financial Services Auth-ority is now considering whether to take further action.